Friday, July 16, 2010

Cheerful News from Charles Krauthammer

There just isn't enough to cut elsewhere to prevent national insolvency. That will require massive tax increases -- most likely a European-style value-added tax. Just as President Ronald Reagan cut taxes to starve the federal government and prevent massive growth in spending, Obama's wild spending -- and quarantining health-care costs from providing possible relief -- will necessitate huge tax increases.

Who would have thought that two elections could wreak such damage?

On the bright side, maybe national bankruptcy would bring us to our senses and a few good amendments to the Constitution. I would make it against the law to create entitlement programs and repeal those we already have. They are the most serious threat to any republic, because they allow some people to vote themselves benefits to be paid for by others. Like interest or geometric progressions they look like nothing to worry about at first. The old parable about the Rajah who promised to give a wise man one grain of rice for the first square on a chess board, two for the second, four for the third and so on applies here.